Southwest Airlines announced it will cut approximately 1,750 leadership jobs, representing a 15% reduction in corporate positions, a significant first in the airline's history. CEO Bob Jordan emphasized this monumental shift follows years of leadership growth exceeding operational needs. Amid financial pressures and rising costs due to inflation and labor contracts, the airline is adapting its business model, offering new premium seating options. These cuts come after a year of instability, including conflicts with activist investors and executive retirements, all indicating the necessity for cost-saving measures.
This is a very difficult and monumental shift, Chief Executive Officer Bob Jordan said in a letter to workers.
The airline's finance chief and top administrative officer also announced their retirements recently.
Southwest has long boasted of never having an involuntary layoff... but the carrier has taken steps to rein in its workforce.
This dramatic step to reduce expenses marks the first layoffs in the carrier's history.
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